Business exchanges gain in popularity among global coatings companies.

Witco and Ciba Speciality Chemicals have signed a Letter of Intent to exchange Witco's epoxy systems and adhesives business and Ciba's PVC heat stabilisers business in a one-for-one transaction. The transaction involving the businesses, both with sales of approximately US$120 million last year,

Witco will acquire Ciba's worldwide PVC heat stabilisers headquartered in Lampertheim, Germany which includes the tin, mixed metal, non-metallic stabilisers, epoxy plasticisers and lubricants for PVC and other PVC stabilisers.

Ciba will acquire Witco's worldwide epoxy systems and adhesives business based in Bergkamen, Germany and minor production facilities in Singapore and Italy. These epoxy systems and adhesives are used for industrial protective coatings to protect both steel and concrete structures against chemical and mechanical wear.

Witco's Chairman, President and Chief Executive Officer, Gary E Cook said, 'We are pleased with this opportunity to reinforce our core competency in polymer additives while divesting an area which would have required intense resources for us to develop a point of critical mass. This swap will provide a broader product line to our customers and better support them from a technological vantage point. This allows Witco to focus and execute against two of our five strategies, those of strategy revitalisation and globalisation, while adding value to our shareholders.'

The transaction will enable Ciba Specialty Chemicals to build on its Performance Polymers as a foundation business and broaden its product offering and supports the plans for business worldwide particularly in the USA and Asia.

In a similar deal BASF, Germany and PPG, USA have agreed to exchange parts of their operations, subject to approval by antitrust authorities in Europe and the USA.

PPG will purchase BASF's worldwide container coatings business which has approximately USS 150 million of sales and BASF will acquire PPG's worldwide surfactants business which concentrates on the USA and Europe and also has sales of approximately US$150 million.

The container coatings division is part of BASF's Coatings Operating Division and develops, produces and markets coatings for metal packaging. It has production sites for container coatings in Germany, France, the Netherlands, Italy, USA, Mexico, Brazil and the Philippines. It also has sales companies in Great Britain, Spain and Canada with development centres located in Germany, USA and Brazil.

PPG produces coatings, glass, fibreglass and chemicals with worldwide sales of approximately US$7.2 billion in 1996. PPG will acquire production sites for container coatings in Tiel, the Netherlands and Barazante, Italy. Also included is the marketing-technical centre in Milford, Ohio, USA.